A new heavyweight player is landing in the cryptocurrency market. Nasdaq, the company that manages the second largest equity market in the United States, is negotiating to launch its own cryptocurrency management fund for institutions.
Nasdaq is getting into cryptos
This could turn out to be a very big move for the cryptocurrency market. Nasdaq, the second largest stock exchange in the United States, is set to launch a cryptocurrency custody service. Called “Nasdaq Digital Assets,” this will be exclusively for institutional clients.
At the time of writing, the company is still in talks with the relevant authorities for the launch of this cryptocurrency management fund. Therefore, this announcement is for the time being made subject to approval from the US regulators.
Specifically, the “Nasdaq Digital Assets” will initially develop an advanced custody solution for institutional clients. According to the release, this will bring together the best attributes of today’s existing cryptocurrency wallets by offering a higher degree of accessibility and scalability, without compromising security.
As a reminder, the Nasdaq includes in its index the main stocks in the digital field, including the giants Amazon, Google or even Meta. Moreover, the company is no stranger to the cryptocurrency market as it already offers market monitoring solutions there, as well as an ETF called Hashdex Nasdaq Crypto.
One goal, to support the cryptocurrency market
This launch, while subject to regulatory approval, reinforces Nasdaq’s ambition to attract institutional investors to the cryptocurrency market. This inevitably requires high-quality custody solutions equivalent to what these customers are used to.
Moreover, demand from institutional players has been growing steadily over the past few years, as Tal Cohen, executive vice president and head of North American markets, explains:
“Demand from institutional investors to engage in digital assets has increased over the past few years, and Nasdaq is well positioned to accelerate broader adoption and drive sustainable growth.”
But more than anything, this announcement is a testament to the confidence this major player in traditional finance has in digital assets. At least that’s the view of Adena Friedman, president and CEO of Nasdaq:
“The technology behind the digital asset ecosystem has the potential to transform markets over the long term. To capture this opportunity, we will focus on providing institutional-level solutions […] to support this evolution.”
Still, this news confirms once again that the barrier between the traditional financial markets and the cryptocurrency market is increasingly being lifted…